© Reuters.
TAMPA, FL – LM Funding America, Inc. (NASDAQ:LMFA), a financing company specializing in cryptocurrency mining, today announced that it will receive an early shipment of 300 Bitmain S21 Antminer machines. The company plans to deploy the new mining hardware by early April, which is expected to increase its mining capacity to 673 petahash.
The Bitmain S21 Antminer are high-efficiency mining rigs with a hash rate of 200 terahashes per second and a power consumption of 3,500 watts. They are designed to mine the SHA-256 algorithm, which is used by Bitcoin and several other cryptocurrencies.
Bruce M. Rodgers, chairman and CEO of LM Funding, said the early delivery of the S21s, originally scheduled for the end of March, is a positive development for the company. Rodgers expressed confidence that these machines will significantly contribute to the company’s revenue growth, especially during the next bitcoin halving event this year and the next one planned for 2028.
LM Funding America began bitcoin mining operations in September 2022 and also operates a technology-focused financing company. This segment of the business provides financing to community nonprofit associations in Florida, Washington, Colorado and Illinois, by purchasing a portion of the associations’ rights to delinquent accounts.
The information in this article is based on a press release from LM Funding America, Inc.
InvestingPro Insights
As LM Funding America, Inc. (NASDAQ:LMFA) prepares to expand its cryptocurrency mining operations with the introduction of new Bitmain S21 Antminer machines, the company’s financial health and market performance provide context broader for investors. With a focus on growth, analysts anticipate higher sales for the current year, aligning with the company’s expansion efforts in the mining sector. This optimism is reflected in the company’s impressive revenue growth over the past twelve months, which stands at 993.94%, demonstrating a substantial increase in the company’s financial activity.
Investors looking for value may find LMFA’s low Price/Book multiple of 0.2 particularly attractive, suggesting that the company’s stock may be undervalued relative to its assets. This measure often attracts investors looking for potential bargains in the market.
Despite these positive indicators, potential investors should be aware that LMFA stock trades with high volatility, which could indicate a higher risk profile. The company is burning through cash quickly, with an operating margin of -173.77% over the last twelve months, highlighting the need for prudent financial management going forward.
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Data from InvestingPro Data reveals a market capitalization of $7.11 million, underscoring the company’s size in the financial markets. The turnover and recent significant return of 17.1% over the past week could be a sign of positive investor sentiment following the announcement of early delivery of mining equipment.
For investors who want to go further, more than ten others InvestingPro Tips are available, offering a comprehensive analysis of LMFA’s financial health and market trends.
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